Hong Kong bridges China, Asean, Middle East as market ties grow: HKEX official

Office in Riyadh and plans for metal warehouse underscore HKEX’s role, Vanessa Lau says at Asian Financial Forum

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A drone view shows Riyadh, Saudi Arabia on November 15, 2024. Photo: Reuters

Published: 4:30pm, 14 Jan 2025Updated: 4:54pm, 14 Jan 2025

Hong Kong is spearheading efforts to strengthen regional market collaboration, connecting global investors with opportunities in mainland China, Southeast Asia and the Middle East, according to the chief operating officer of the city’s bourse operator.

“For the Hong Kong exchange and also importantly for Hong Kong, that regional collaboration needs to continue,” Vanessa Lau of Hong Kong Exchanges and Clearing (HKEX) said at the Asian Financial Forum in Hong Kong on Tuesday. “We need to be more connected, not less.”

HKEX is launching an office in Riyadh, the capital of Saudi Arabia, adding to its locations in New York, London, Beijing and Singapore.

Having acquired London Metal Exchange (LME) in 2012, HKEX is also exploring the possibility of building the first LME-accredited warehouse in Hong Kong. This would allow the physical exchange of metals such as aluminium and zinc between mainland China and the rest of the world. Jeddah, Saudi Arabia, already has such a facility.

“A lot of new initiatives are happening, and we believe that both the Middle East and Asean [Association of Southeast Asian Nations] will represent very strategic opportunities for Hong Kong and for the Hong Kong exchange,” Lau said.

Senior officials in Saudi Arabia have indicated that companies in the Middle East are interested in listing in Hong Kong to raise funds for infrastructure projects, Carlson Tong Ka-shing, HKEX chairman, said last year.